The European Union is moving toward a new approach to public procurement that would give European companies a stronger position in major public contracts. The idea is straightforward: if European governments are spending European taxpayers’ money, more of that spending should strengthen European industry.
But the proposal is proving harder to define than its slogan suggests.
The European Commission’s planned overhaul of public procurement rules is expected to give authorities greater scope to favour European suppliers, particularly in strategic sectors. A draft seen by Reuters indicated that large contracts could potentially exclude bids with less than 50% European content, while strategic sectors could receive preferential treatment. The proposal is not yet final and is expected to be presented in September.
The disagreement inside the EU is largely about how far that preference should go.
Some governments see public procurement as an important industrial tool. Europe wants stronger domestic capacity in areas where it has become dependent on foreign suppliers, while also giving European companies a more predictable market.
Others are concerned that overly strict European-content requirements could reduce competition, increase costs and make it harder for public authorities to choose the best supplier. European Parliament discussions have similarly highlighted the need to balance industrial capacity with competition, transparency and the integrity of the Single Market.
That tension explains why “Buy European” is becoming less a simple protectionist slogan and more a question of economic strategy.
Europe does have enormous purchasing power: public procurement represents roughly 15% of EU GDP, making government contracts a potentially powerful instrument for industrial policy. But using that power effectively will require a careful distinction between strategic protection and unnecessary protectionism.
The real question for Brussels is therefore not whether Europe should buy European. It is where European preference actually creates resilience, and where it simply makes European governments pay more for less competition.
For now, that balance remains unresolved.
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